Sila Realty SILA Q4 2025 Earnings Call Transcript
The Motley Fool
by newsfeedback@fool.com (Motley Fool Transcribing)February 25, 2026
AI-Generated Deep Dive Summary
Sila Realty Trust (SILA) delivered strong financial results in its Q4 2025 earnings call, highlighting continued portfolio expansion, improved tenant quality, and robust balance sheet capacity. The company reported total acquisitions of six healthcare facilities totaling 241,000 rentable square feet for $150 million in 2025, with an additional $43.1 million facility acquired post-year-end. Despite disposing three properties for $14.5 million and one more expected to close early in 2026, Sila’s cash NOI rose by 0.8% to $169.9 million, driven by same-store growth of 0.9%. FFO per share increased by 3.6% to $2.16, supported by higher straight-line rent and reduced G&A expenses. However, AFFO per share declined by 5.8% to $2.18 due to elevated interest expense.
Sila’s portfolio demonstrated strong financial health, with EBITDARM rent coverage improving to 5.9x, up from 5.3x previously. The company maintained a conservative leverage ratio of 3.9x net debt to EBITDAre, well within its targeted range of 4.5x-5.5x and leaving over $200 million in immediate debt capacity. Liquidity remained strong at over $480 million, providing flexibility for future acquisitions and internal growth initiatives. The weighted average lease term extended to 10 years, reflecting successful renewals and proactive extensions, while tenant credit quality improved, with investment-grade tenants accounting for 40.6% of annual base rent.
The company’s balance sheet remained stable, with $676 million in unsecured credit facility debt at a favorable 4.7% average rate as of year-end. Sila invested over $7 million in redevelopment projects, targeting future yields of 150-200 basis points above recent acquisitions. These efforts align with the company’s strategy to optimize its portfolio through strategic capital deployment and tenant transitions. Additionally, Sila’s inclusion in the Russell
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Originally published on The Motley Fool on 2/25/2026